Government pensions in California remain untouchable, at least for
now, after a bankruptcy judge approved Stockton’s plan to repay its
creditors Thursday without reducing the city’s pension obligations.

In
a major victory for CalPERS and public employees, U.S. Bankruptcy Judge
Christopher Klein approved Stockton’s reorganization plan over the
objections of a disgruntled investment firm, Franklin Templeton, which
wanted more money at the expense of the city’s pension benefits. “This
plan, I’m persuaded, is about the best that can be done,” Klein told a
packed courtroom in U.S. Bankruptcy Court in Sacramento.